HIGHLIGHTS
- The 10-year US Treasury yield declined by 16 basis points (bps) to 4.61% on January 17, 2025, from 4.77% on January 10, 2025. Similarly, the 2-year US Treasury yield also decreased by 13 bps to 4.27% over the same period. Meanwhile, the 10-year Indonesian Government Bond (INDOGB) yield fell by 5 bps, settling at 7.14% on January 17, 2025.
- The US Dollar Index decreased by 0.53% week-over-week, while the Indonesian Rupiah depreciated by 1.11%, with the exchange rate closing at IDR 16,365 per US Dollar on January 17, 2025. Additionally, Indonesia's 5-year Credit Default Swap (CDS) narrowed by 5 bps on a weekly basis, reaching 77 bps on January 17, 2025.
- The total volume of government bonds was IDR 45.10 trillion, with medium-term bonds (5-15 years) accounting for the majority. This marked a decrease from the previous day's transaction of IDR 57.92 trillion and was lower than the year-to-date (YTD) average of IDR 47.23 trillion. Meanwhile, the outright transaction volume reached IDR 20.09 trillion, up from IDR 18.21 trillion on the previous day.
- In the corporate bond market, the total transaction volume was recorded at IDR 1,740 billion, predominantly in short-term bonds (under 5 years). This represented an increase from the previous day's volume of IDR 1,590 billion, although it remained below this year's average of IDR 2,420 billion. The outright transaction volume for corporate bonds reached IDR 1,739 billion, up from IDR 1,411 billion on the previous day.
- The Jakarta Composite Index (JCI) rose by 0.66%, moving to 7,155 from 7,108. In commodity markets, Brent crude oil dropped from USD 83.01 to USD 82.11 per barrel, while the WTI Cushing Crude Oil Spot price decreased from USD 80.04 to USD 78.68 per barrel.
GLOBAL UPDATES
- China’s GDP rose 5.4% y-y in the 4Q24, marking the fastest pace in six quarters. The jump brought full-year growth to 5%. Annual consumption growth languished below pre-pandemic levels, property investment contracted by the most on record and deflation persisted for a second straight year. Nominal GDP expanded only 4.2% in 2024, the slowest since the economy opened up in the late 1970s barring the pandemic slump. (Bloomberg)
DOMESTIC UPDATES
- Bank Indonesia reported business slowdown in 4Q24 vs 3Q (12.5% vs. 14.4%) based on their quarterly Business Activity Survey. The survey also indicated a further slowdown in 1Q25 with a net-weighted balance of 12.0%. (Bank Indonesia)
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